Romanian households make EUR 550 a month on average. What do they spend it on?

An average household in Romania made about EUR 550 in revenues per month in the first quarter of 2014, (the equivalent of RON 2,477 at an average exchange rate of RON 4.5 per EUR). Almost half of revenues came from salaries and about a quarter from social welfare, which includes pensions, child benefits, unemployment aid and others, according to data released by the National Statistics Institute (INS). Almost 18 percent of households’ revenues are in kind. These include the consumption of food and fodder by countryside households from their own production (auto consumption), but also in kind revenues received by employees and social welfare beneficiaries. Revenues from independent activities were 2.5 percent of the households’ revenues and the sale of agricultural products contributed 2.4 percent, on average. Romanian household spent almost entirely their monthly revenues. The average expenditure of a Romanian household was of RON 2,226 (EUR 495) per month, which is almost 90 percent of the average revenues. Consumption on food, nonfood goods and services were 72.6 percent of the total expenditures, or almost EUR 360, while 16.7 percent went to the state as taxes and contributions, which is EUR 83 for each household. Some 8 percent was auto consumption. Only 0.2 percent of households’ expenditures were directed for investment for buying or building homes or land purchases, data shows. Of the EUR 360 monthly average consumption expenditures of Romanian households, 40.5 percent are for food and non-alcoholic beverages, which was EUR 146. The second highest cost was tied to living and utilities, which include rent, gas, electricity, water and others. Alcoholic beverages and tobacco come third, with 7.5 percent of these expenses. This is more than Romanian households spend for their health, which is 4.8 percent of the total consumption expenditures. Other important expenses are transport (5.7 percent of total), communications (4.7 percent), recreation and culture (3.6 percent). Romanian households spend only 1.6 percent (EUR 5.75 a month) of their money on hotels and restaurants, and 0.7 percent (EUR 2.52) for education, INS data shows. There are about 7.1 million households in Romania, with an average of 2.7 persons each. Andrei Chirileasa, andrei@romania-insider.com